Don’t Compare Averages

This post was originally published on this site

Martin Fowler

Imagine you’re an executive, and you’re asked to decide which of your sales leaders to give a big award/promotion/bonus to. Your company is a tooth-and-claw capitalist company that only considers revenue to be important, so the key element in your decision is who has got the most revenue growth this year. (Given it’s 2020, maybe we sell masks.)

Here’s the all-important numbers.

name average revenue increase (%) alice 5 bob 7.9 clara 5

And a colorful graph

Based on this, the decision looks easy. Bob, at just under 8%, has a notably better revenue increase than his rivals who languish at 5%.

But lets dig deeper, and look at the individual accounts for each of our salespeeps.

name account revenue increases (%) alice -1 2 1 -3 -1 10

To read the full article click on the 'post' link at the top.